Nincompoops and what to do with them

As most of you know I’ve owned and operated my own businesses for some forty years. If you read my book you will learn that over my entrepreneurial lifetime I’ve made some huge mistakes, and I’ve done some things right. I can truthfully say that all of those years of experience have left me much better prepared to succeed, and at no time did I learn more than when I made huge mistakes and then had to fight to keep my head above water for months and even years in order to correct them. Nowhere have I learned more than in the area of finance and thus I feel that I can offer some wise advice on the matter.

One such nugget is that it is awful tempting to hire extra people and buy extra equipment and “stuff” when my budget really does not allow for it. It’s even more tempting when I have a lot of money in the bank or excellent credit. Perhaps worst of all is not even having prepared a budget, or if I do have one, not to follow it. I believe it is impossible to succeed without controlling spending and that applies to personal finance as well. In business and in our personal lives we need a budget and we must remain disciplined and adhere to it.

Did you know that 11 out of 12 businesses fail in the first three years? Did you know that the number one reason for business failure in this country is poor financial management? No one should be shocked to learn that the same holds true for causing personal bankruptcies. The divorce rate is 52% in the United States and the leading cause of it is financial stress and poor money management.

The Lord understood that this would be one of satan’s biggest tools of discouragement against us and He jammed the Bible full of advice about managing our finances, but I can summarize it rather quickly for you: Live within the limits of your income and don’t borrow money to spend what you don’t have.

You might think I can’t relate to your situation; oh, but you would be wrong. Remember I hitch-hiked into Atlanta homeless and penniless and began my career working menial jobs. I’ve experienced the entire rags to riches spectrum and trust me I know exactly what it’s like to struggle financially. The nice home, swimming pool, big car, beautiful furniture, and thousands of dollars on Christmas presents for the kids and grandkids should come AFTER you succeed and can afford it, and not before. If you can afford to spend without upsetting your budget, then go for it, otherwise find a way to make do with what you can afford, even if it’s meager.

Financial freedom begins with producing a budget IN WRITING and developing the discipline to stick with it. It’s no small wonder that the largest debtor in the world has reached that unenviable position. The United States government didn’t even bother to pass a budget this year, much less spend any time being disciplined enough to follow one. Is anyone shocked that we are borrowing billions from the communist country of China and on the verge of financial collapse?

There are those in power who do not understand the basic principles above. Do yourself and our country a favor today. Go down and vote those nincompoops out of office!

Proverbs 22:26
Do not be a man who strikes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.